Speak EV - Electric Car Forums banner
1 - 20 of 63 Posts

·
Registered
Joined
·
98 Posts
Discussion Starter · #1 ·
Drivers of very low-emission cars may be in for a shock from 6 April 2015. Those vehicles with CO2 emissions from zero (i.e. electric) to 50g/km will be subject to tax as a benefit in kind for the first time. Tax will be payable on 5% of the vehicle's list price.

An electric van is currently tax-free for the driver, even when it is used for private journeys. However, from 6 April 2015 the private use of an electric commercial vehicle will be a taxable benefit, calculated as £630 for 2015/16. The taxable benefit for electric vans will increase each year until it is equal to other vans from April 2020.
 

·
Registered
Joined
·
98 Posts
Discussion Starter · #3 ·
Yes company cars and benefit in kind tax for the employee that has the car. Also, just to be clear this is a UK tax change.
 

·
Registered
Joined
·
330 Posts
Is this only for company cars ?
It applies to any car made available to employes for their own use (including driving to and from their place of work). It includes shared cars (such as pooled cars). There are a few exceptions such as a replacement car whilst current one is being repaired - but not for instance an upgrade car for going on holiday - when both would be charged. Its pro-rata over the year
 

·
Registered
Joined
·
183 Posts
Drivers of very low-emission cars may be in for a shock from 6 April 2015. Those vehicles with CO2 emissions from zero (i.e. electric) to 50g/km will be subject to tax as a benefit in kind for the first time. Tax will be payable on 5% of the vehicle's list price
I don't think that is correct is it? Currently zero emission cars are free and in 2015 - 2016 will be 5% BIK whereas 1-50g/km CO cars are currently 5% and will be 5% in 2015 - 2016 and 7% 2016 - 2017
 

·
Registered
Joined
·
98 Posts
Discussion Starter · #8 ·
My i3 Rex (13g) is the same 5%

Its just interesting that now pure EV's are going to start getting the 5% BIK tax applied to them.
 

·
Registered
Joined
·
536 Posts
Does seem a bit odd that a zero emission pure EV will be the same cost as a 4X4 2.0 petrol Mitsubishi PHEV
Does seem pretty crazy doesn't it, I think the whole system needs a revamp. What I would expect over the next few years though is a massive hit on diesel cars as apparently the government has realised that they aren't as clean as the manufacturers would have them believe after all! :rolleyes:
 

·
Registered
Joined
·
98 Posts
Discussion Starter · #13 ·
@millermilla I've sent them a email asking them for some links to read more on this. I'm no tax specialist so can't comment on if it is or isn't a miss print.

Not sure if that link you have was updated since the Autumn statement or not it wasn't very clear?
 

·
Registered
Joined
·
746 Posts
This was one of the reasons I went for an i3 Rex rather than an i3 BEV. The tax difference was around £60 up to April 2015, but as my car is not likely to be delivered until them by the time I have it there will be no difference in BIK rates between pure BEV (i3 BEV, Leaf, Zoe etc) and most PHEVs (Outlander, i3 Rex etc.)
 

·
Registered
Joined
·
631 Posts
Amazing, just as I purchase an EV through my Ltd Co.

Still 5% is a pittance.
 

·
Registered
Joined
·
6,865 Posts
This was one of the reasons I went for an i3 Rex rather than an i3 BEV. The tax difference was around £60 up to April 2015, but as my car is not likely to be delivered until them by the time I have it there will be no difference in BIK rates between pure BEV (i3 BEV, Leaf, Zoe etc) and most PHEVs (Outlander, i3 Rex etc.)
The other thing is you can claim mileage allowances if not provided with fuel on a petrol car.

So you if you do any business trips in the car (apart from commuting to your normal place of work) you can claim 14p per mile in a REX, but not in a BEV :(

Obviously if these trips are within battery range this is just daft.

**Edit**
But it does mean if you drove 450 miles for business over the time you've had the car the £60 is more than repaid
 

·
Registered
Joined
·
631 Posts
If you are buying it for cash or cash equivalent, make sure you factor in FYA. :)
Doing it on a PCP arrangement, I liked the idea of handing it back after 3 years or buying it if I like it, see it as an extended test drive!!!!!

Really it's just a stop gap until I save enough for a Tesla
 
1 - 20 of 63 Posts
Top